Credit & Collections

Learn how to read a credit report, how to improve your business credit rating and get advice on how to collect debt.

10 steps to effective collections

To keep receivables flowing smoothly, many businesses use a series of letters and phone calls to encourage customers to pay. These communications start out friendly and progressively become more serious and insistent as payments become overdue. How you structure your collections system is an individual matter – you may be more comfortable calling up clients than sending letters, for instance. The important thing is to have a system, and you can use the steps outlined below to create yours.

rating: 
0
No votes yet

Example of a tax invoice

In order to comply with VAT regulations, for any sale of more than R50, you have to issue a tax invoice, with the word "tax invoice" printed on it. This is the most important document in the VAT system. The VAT Act prescribes that a tax invoice must contain certain details about the taxable supply as well as the parties to the transaction. This includes the value of the goods/services excluding VAT, and the VAT amount (calculated at 14% of the above amount), among others.

rating: 
0
No votes yet

How to handle a potential client with bad credit

You've looked at a potential client's credit report and recognize the warning signs – late payments, pending lawsuits, heavy debt load. This customer could be a credit risk. Does this mean you have to turn the business down? Maybe not. Take these steps to minimize risk when working with individuals or companies with questionable credit.

rating: 
0
No votes yet

Implementing an effective collections system

Having systems in place for all aspects of your business operations not only ensures that you're always on top of things, but also that you appear professional and business-like to your customers. This is of particular importance when collecting on invoices, a vital element of maintaining your cash flow. This article provides you with tips on how to implement an effective collections system.

rating: 
0
No votes yet

Is debtor finance for me?

You may have heard of this form of financing, but aren’t sure what it is and if it’s an option for your business. The basis of debtor financing is that you use the debtor (normally an invoice) to raise capital against it. The major advantage is that you do not have to wait for your debtor to pay you. You raise funds against the invoice, so you have working capital to be used in the business.

rating: 
0
No votes yet

Keep your credit record squeaky clean

At one time or another, you may have to apply for a loan or overdraft to expand your business, buy equipment or finance some other aspect of your operations. This is when having a good credit history becomes very important. Establishing and maintaining a good credit record takes time and can be challenging during tough financial times. This is why you should not obtain credit for unnecessary expenses. This article looks at how to keep your credit record clean.

rating: 
0
No votes yet

Loan payment calculator

This loan payment calculator allows you to calculate the figure of your loan repayments. The calculator is split into two sections. the first section looks at how to calculate your monthly repayments for your mortgage, home equity, or car loans. The second section looks at how to calculate the impact of extra payments in addition to your existing monthly payments.

rating: 
0
No votes yet

Money – manage it or lose it!

When you mention the “M” word these days you can see many SME owners tensing up – the body language immediately gives you feedback that here is an area many wish a magic fairy would resolve. So this article is all about helping you to take responsibility for a core factor in the success of your business. Here are some ideas you can explore on how you can become more professional in the collection of money due to you.

rating: 
0
No votes yet

Monthly bank reconciliation template

If you find yourself spending lots of time every month reconciling your bank statement and still aren't able to nail it down to the penny, our specially designed monthly bank reconciliation form contained in the attached file might be able to help you. It can help make the process far less painful and much more accurate, and will even do some of the clerical work for you. Just put in the account balance shown on your bank statement, your deposits in transit, your outstanding checks, and your account balance according to your books in the spaces provided.

rating: 
0
No votes yet

National Credit Regulator

The National Credit Regulator (NCR) was established as the regulator under the National Credit Act No. 34 of 2005 (The Act) and is responsible for the regulation of the South African credit industry. It is tasked with carrying out education, research, policy development, registration of industry participants, investigation of complaints, and ensuring the enforcement of the Act. The Act requires the Regulator to promote the development of an accessible credit market, particularly to address the needs of historically disadvantaged persons, low income persons, and remote, isolated or low density communities.

rating: 
0
No votes yet

Recovering debt from an employee

Sometimes people resign from a business and due to a number of different circumstances, they still owe money to their previous employer. It would be ideal to make a clean break with departing employees. Alas, it is not always so, especially when the trust relationship has been completely destroyed. Here are a few guidelines to help you with the recovery of employee debt.

rating: 
0
No votes yet

Sample collection letters

Personal visits, telephone calls, and letters are the three most common collection approaches that small business owners use to collect past due accounts. Since many small business owners simply don't have the time or opportunity for personal visits or telephone calls, a letter is often the method of choice. This document provides you with some examples of credit recovery communication to help you manage the relationship with your clients.

rating: 
0
No votes yet

The different types of credit

As a small business owner, it is important to know all about credit. You need to know how to apply for loans and how to manage them. Almost everyone will find themselves in a position of needing a little extra help at some point in their lives. There are various types of credit that you should be aware of in order to be able to weigh up what is best for you your particular situation. The first thing to know is the difference between secured credit and unsecured credit.

rating: 
0
No votes yet

The do's and don'ts of debt collecting

Every small business owner knows the stress that comes with clients who don't pay when they're supposed to. It affects your cash flow and your ability to pay your own suppliers. You should have a formal process in place for when this happens, which it inevitably will. Here are some tips for collecting on overdue accounts.

rating: 
0
No votes yet

When and how to run a credit check on your client

No one likes not getting paid for work done or products sold. Even just getting paid late has bad consequences for your cash flow – the life blood of business.Trying to get the money owed to you can be painful and difficult, and perhaps even expensive. Wouldn’t you rather avoid this scenario altogether? A proven way to do so is by running credit checks on your clients and customers.

rating: 
0
No votes yet